UBS Financial Services - United States of America



CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

UBS Financial Services Inc. (a Subsidiary of UBS Americas Inc.) December 31, 2023 With Report of Independent Registered Public Accounting Firm

UBS Financial Services Inc.

Consolidated Statement of Financial Condition

December 31, 2023

Contents

Report of Independent Registered Public Accounting Firm............................................................1 Consolidated Statement of Financial Condition ..............................................................................2 Notes to Consolidated Statement of Financial Condition................................................................3

Ernst & Young LLP One Manhattan West New York, NY 10001-8604

Tel: +1 212 773 3000

Report of Independent Registered Public Accounting Firm

To the Stockholder and the Board of Directors of UBS Financial Services Inc.

Opinion on the Financial Statement

We have audited the accompanying consolidated statement of financial condition of UBS Financial Services Inc. (the Company) as of December 31, 2023 and the related notes (the consolidated financial statement). In our opinion, the consolidated financial statement presents fairly, in all material respects, the financial position of the Company at December 31, 2023, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

We have served as the Company's auditor since 1969.

February 28, 2024

A member firm of Ernst & Young Global Limited

UBS Financial Services Inc.

Consolidated Statement of Financial Condition

December 31, 2023 (Amounts in Thousands of Dollars)

Assets Cash and cash equivalents Cash and securities segregated and on deposit for federal and other regulations Collateralized agreements:

Securities purchased under agreements to resell Securities borrowed Receivables: Customers (net of allowance for doubtful accounts of $2) Brokers, dealers and clearing organizations Dividends and interest Fees and other Financial instruments owned, at fair value Financial assets designated at fair value Receivables from affiliated companies Property, equipment and software (net of accumulated depreciation and amortization of $1,603,346) Goodwill and intangibles Deferred tax asset, net Other assets Total assets

Liabilities and stockholder's equity Collateralized agreements: Securities loaned Payables: Customers Brokers, dealers and clearing organizations Dividends and interest Financial instruments sold, not yet purchased, at fair value Financial liabilities designated at fair value Accrued compensation and benefits Payables to affiliated companies Income taxes payable Other liabilities and accrued expenses

Subordinated liabilities Stockholder's equity Total liabilities and stockholder's equity

554,938 1,533,155

71,704 768,828

284,381 2,483,975

7,976 276,057 878,749 5,037,990 619,504 1,611,994

553,978 2,660,622

320,296 17,664,147

137,048

821,345 77,974 2,821 76,444 4,574,638 2,165,690 2,071,846 42,738 1,429,543 11,400,087 550,000 5,714,060 17,664,147

See notes to consolidated statement of financial condition.

2

UBS Financial Services Inc.

Notes to Consolidated Statement of Financial Condition

December 31, 2023 (Amounts in Thousands of Dollars)

1. Organization

UBS Financial Services Inc. ("UBSFSI") is registered as a broker-dealer with the Securities and Exchange Commission ("SEC"), a futures commission merchant with the Commodity Futures Trading Commission ("CFTC") and the National Futures Association and is a member of various exchanges and the Financial Industry Regulatory Authority ("FINRA"). UBSFSI operates as one operating segment which is to provide broker-dealer services to its customers. UBSFSI's business activities include securities and commodities brokerage, investment advisory and asset management services to serve the investment, cash management, financial planning and borrowing needs of individual and institutional customers.

UBSFSI is a wholly owned subsidiary of UBS Americas Inc. ("UBS Americas") which is a wholly owned subsidiary of UBS Americas Holding LLC ("UBSAHL"). UBSAHL was established in order to become the intermediate holding company for all United States subsidiaries of UBS Group AG ("UBS" or "Group") pursuant to the rules enacted for foreign banks in the United States. UBSAHL is a wholly owned subsidiary of UBS AG which is a wholly owned subsidiary of UBS.

In March 2023, UBS Group entered into an agreement to acquire Credit Suisse Group AG (Credit Suisse) by means of a statutory merger under Swiss law. Upon closing of the transaction on June 12, 2023, Credit Suisse merged with UBS Group which is the surviving entity. The merger has minimal impact on UBSFSI.

2. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The consolidated statement of financial condition includes the accounts of UBSFSI and its wholly owned subsidiaries (collectively, the "Company"). All intercompany balances and transactions have been eliminated. U.S. dollar is both the functional and presentation currency for UBSFSI. There are no material subsidiaries with different functional currencies.

UBSFSI consolidates entities in which UBSFSI has a controlling financial interest. UBSFSI determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a variable interest entity ("VIE") or a voting interest entity. At December 31, 2023, the Company does not have any interests in VIEs.

The consolidated statement of financial condition is prepared in conformity with accounting principles generally accepted ("GAAP") in the United States, which requires management to make judgments and assumptions that affect the amounts reported in the consolidated statement of financial condition and accompanying notes. Actual results could differ from those estimates. Management makes estimates regarding valuations of certain assets and liabilities, expected credit losses, the outcome of litigation, the carrying amount of goodwill and other intangible assets,

3

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download